Giant casino operator Las Vegas Sands Corporation has reportedly held preliminary discussions about the possibility of exiting the United States altogether by offloading its three properties in Las Vegas.
According to a Monday report from the Bloomberg news service, the firm headed by 87-year-old billionaire Sheldon Adelson could expect to net at least $6 billion by selling The Venetian Resort Hotel Casino and its 3,000-room The Palazzo hotel as well as the nearby Sands Expo and Convention Center. However, the source explained that such a move could possibly be scuppered by a lack of buyers prepared to part with that much cash amid a coronavirus-induced recession.
Foreign collection:
Las Vegas-headquartered Las Vegas Sands Corporation reportedly has a market valuation in the region of $37.5 billion and is also responsible via its Sands China Limited subsidiary for Macau’s The Venetian Macao, The Plaza Macao, Sands Macao and The Parisian Macao properties. This latter entity also purportedly runs the Marina Bay Sands facility in Singapore and has nearly finished a $2.2 billion project that is transforming the giant Sands Cotai Central development into the new-look The Londoner Macao.
Pessimistic position:
Despite its 32-year history in southern Nevada, Las Vegas Sands Corporation reportedly now makes most of its money abroad with its venues in Macau having last year generated some 63% of the company’s $13.7 billion in annual revenues. This was followed by Singapore at approximately 22% to leave the Las Vegas market accounting for a mere 15%.
Important incumbrance:
Ben Lee, a managing partner for Macau-based consultancy firm IGamiX, reportedly told Bloomberg that another downside to Las Vegas is that it currently accounts for around 80% of the casino firm’s ‘regulatory pain and burden’. He purportedly moreover detailed that all of this has been further complicated by the impact of coronavirus with both Macau and Singapore having recently posted third-quarter improvements while the market in southern Nevada continues to flounder.
Lee reportedly told Bloomberg…
“The growing insignificance of the United States market explains to you why Las Vegas Sands Corporation is looking to offload their United States properties.”
Investor interest:
Although Bloomberg reported that nothing has yet been finalized with respect to a possible sale, news that one of North America’s most prominent casino firms could be planning to exit its home market reportedly sent the individual price of shares in New York-listed Las Vegas Sands Corporation up by some 12% to $49.94.
Reportedly read a statement from Lee…
“We are seeing an uptick in real tourists on the ground in Macau. The profile of the Chinese tourists is dominated by young females and families; mainlanders taking advantage of the cheap accommodation on offer.”